I have done my journal entries and made T-accounts, but my unadjusted trial bala

Question

I have done my journal entries and made T-accounts, but my unadjusted trial balance sheet isn't balancing. I just need help finding my error.

Journal Entries:

T-Accounts:

Unadjusted Balance Sheet:

Facts: Stackhouse, Connelly, and Teagarden Enterprises (SCT Enterprises) was formed in December 2014 During the first month of operation, the following transactions occurred Dec Issued common stock in exchange for $1,000,000 cash. 2 Purchased inventory on account for $80,000 (the perpetual inventory system is used) 3 Purchased $500,000 in equipment for cash. 4 Paid the company's landlord $12,000 for rent for twelve months, debiting Prepaid Rent Expense Sold merchandise on account for $130,000. The cost of the merchandise was $75,000 Borrowed $60,000 from a local bank and signed a note. Principal and interest of 10% to be repaid in one year Paid employees $20,000 wages for the first half of the month. Paid $60,000 to suppliers for the merchandise purchased on December 2. Collected $50,000 on account from customers. Paid various utility bills of $3,500 for the month of December Paid $8,000 in insurance for the period January 1, 2015 to March 1, 2015 Received payment of S5,000 for an order to be delivered January 20. The cost of the merchandise for the order will be $3,500 10 15 20 24 26 28 31 31

Explanation / Answer

Dear student,

Difference in trial balance is of $ 8000 which is due to the wrong ledger balance of cash account.

Balance in cash ledger is $ 511500 and not $ 519500. You have posted the entries correctly but there is a calculation mistake. Showing it as below:

     5,11,500.00

Hope it helps.

Cash    10,00,000.00    5,00,000.00          60,000.00       12,000.00          50,000.00       20,000.00            5,000.00       60,000.00          3,500.00          8,000.00

     5,11,500.00

Hope it helps.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---